Retail chain headline turnover up 21.8% to R23.3bn

South African retail group Shoprite said in a trading update on Wednesday that it's turnover for
the six months ended 31 December 2007 increased by 21.8% to R23.3bn.

It added that growth for like on like businesses was 16.5%. "These figures should be interpreted against the background of the industrial action affecting the majority of Shoprite stores during the corresponding period in 2006," it said.

It explained that a more meaningful assumption could be made when considering its December turnover. In December, growth was unaffected by strike action.

"Group grew by 16.1% and the like for like stores by 11.7% for the month (of December)," it said.

The retailer added that non South African business continued to perform satisfactorily and for the six months grew by 32.5% and 20.2% for like for like stores.

It did note that the National Credit Act, higher interest rates and a general downturn in purchases of durable and semi-durable goods largely affected its furniture division's sales, which grew by 3.2% for the period.

The furniture division is included in the group's figures.

The retailer is expecting to release its interim results for the six-months ended 31 December 2007 on February 19.

Article via I-Net-Bridge